Why Does My Roth-IRA Distributions Get Reported as Income?

Dangerruss

From what I understand, distributions from a Roth IRA is non taxable,

Sherlock

Open the Roth account, press Ctrl + Shift + E, choose Yes for Tax deferred, select Tax Schedule, select 1099-R: Total IRA gross distrib. in the Transfers out pull-down menu, OK, and OK.

Note:  The income from a Roth account should be reported as non-taxable.

NotACPA

How do you have the tax attributes on that account set?  Merely using the Roth name isn't sufficient.

Dangerruss

Not sure how I set tax attributes for this distribution in my checking account.

Sherlock

Open the Roth account, press Ctrl + Shift + E, choose Yes for Tax deferred, select Tax Schedule, select 1099-R: Total IRA gross distrib. in the Transfers out pull-down menu, OK, and OK.

Note:  The income from a Roth account should be reported as non-taxable.

Dangerruss

I figured that out.. Thanks. But, when I do a report it still shows up as income.

Sherlock

Dangerruss said:

I figured that out.. Thanks. But, when I do a report it still shows up as income.

There are a variety of ways we may exclude income and expense due to transfers between an account included in a report and an account excluded from a report.  For example, we may exclude the account transfer category: open the report, press Alt + C, select the Categories tab, uncheck the Roth account category. and select OK.